Trump gets boost from job growth

Job growth surged in April and the unemployment rate neared a 10-year low, the Labor Department reported Friday, giving a boost to President Donald Trump's promise of a robust economic recovery.

With 211,000 jobs added in April, Trump's job-creation total since taking office remains shy of the "over 600,000 jobs" he boasted of creating a few weeks ago. But April's rebound over March's poor showing, combined with the House's passage Thursday of legislation to repeal Obamacare, could — if it lasts — add momentum to Trump's other policy priorities, like tax reform.

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Unemployment was4.4 percent, down fromMarch’s 4.5 percent.

The Labor Department's initial low estimate for March job growth was revised downward to 79,000 job, appearing to confirm that the dip that month was due to weather and not a sign of slowdown in the labor market.

Average hourly private-sector earnings were up 2.5 percentover the previous year. In March, they were up2.6 percent over the previous year.

Republicans were quick to embrace the report. Labor Secretary Alexander Acosta said that the “steady and sustained increase in job creation equals new paychecks for American workers and income for American families,” but cautioned: “We have challenges ahead as we continue to focus on job growth, on bridging the skills gap, and on expanding opportunity for all Americans.”

House Ways and Means Chairman Kevin Brady (R-Texas) said in a written statement that "this report shows our economy is making progress," adding that he was "confident" that Congress "will accelerate this progress" by working with Trump on a "pro-growth agenda."

Democrats agreed that the report was strong, but credited the Obama administration. Joint Economic Committee ranking member Sen. Martin Heinrich (D-N.M.) said: “These numbers continue to indicate the success of a growing economy inherited by President Trump” and noted that “we have yet to see any clear plan on creating jobs and raising wages from the president or congressional Republicans.”

Analysts reacted positively as well. Brian Coulton, chief economist at Fitch Ratings, told CNBC that "this just adds to the perception that it's going to be easier and easier to find a job if you want one these days."

But Elise Gould, senior economist at the left-leaning Economic Policy Institute, was more cautious. She said that April's jobs numbers suggest the economy is "inching towards full employment" but noted that over-the-year wage growth remained "disappointing." She said that "in a healthy economy we would expect to see wages growing at 3.5-4 percent."

April's jobs growth increases the likelihood that the Federal Reserve will hike interest rates in June, despite last week's weak GDP report. The Commerce Department reported GDP increased a mere 0.7 percent during the first quarter of 2017 — down from the fourth quarter of 2016’s 2.1 percent, the third quarter’s 3.5 percent and the second quarter’s 1.4 percent.

Trump's stated goal is to increase GDP by 4 percent. Last week, when asked about GDP, Trump told Fox News: “We're saying 3 (percent) but I say 4 over the next few years,” adding, "there's no reason we shouldn't be able to get at some point into the future to 5 and above."

Commerce’s second cut at estimating first quarter GDP growth will be released May 26.

Analysts surveyed by Bloomberg had predicted the creation of about 185,000 jobs, an unemployment rate of 4.6 percent, and an over-the-year increase in hourly earnings of 2.7 percent. The payroll company ADP estimated on Wednesday, based on its own records, that private-sector job growth in April was 177,000.

Labor force participation remained low at 62.9 percent, down fromMarch’s 63 percent, and close to its lowest level since the 1970s.